Shares of Ddev Plastiks Industries Ltd were trading 5% higher as its shareholders have approved the issue of bonus shares. They reached a record high of ₹ 231.00 apiece by 12:49 PM on Tuesday.
In an exchange filing, the company informed that it has its shareholders vide postal ballot, have approved the allotment of bonus shares in the ratio of 1:10. Therefore, eligible shareholders will receive one bonus equity share in exchange for every ten equity shares that they hold in the company. The company has fixed June 30, 2023, as the record date for the purpose of this issue.
In the past year, the company’s share price zoomed from ₹ 41.30 to the current level giving multibagger returns of 459%. Therefore if an investor had invested ₹ 1 lakh in the company’s shares a year ago, the value of their holdings would have been ₹ 5.59 lakhs today.
Ddev Plastiks Industries is a polymer compound manufacturer with a diversified product portfolio. It has introduced engineering plastic compounds for white goods, automotive and the electrical appliances industry. It exports its products to over fifty countries around the world.
With a market capitalization of ₹ 2,070 crores, Ddev Plastiks Industries is a small-cap company. It has a high return on equity of 23.49% and an ideal debt-to-equity ratio of 0.11. The company’s shares were trading at a price-to-earnings ratio (P/E) of 19.89, which is higher than the industry P/E of 15.41, indicating that the stock might be overvalued as compared to its peers.
Written By Simran Bafna
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